Nate's Food Company (NHMD)

[Jandrsn21]

This is from the April 14 2015 10Q released a month ago!

Operating Expenses

For the period ending February 28, 2015, the Company had $1,054,576 in Operating Expenses. The Company had $105,232 in operating expenses related to food development and research and $949,344 is stock expenses related to share issuances to 3rd party consultants.

Liquidity and Capital Resources

As of February 28, 2015, the Company had $1,328 in cash and a total of $1,328 in assets. In management's opinion, the Company's cash position is insufficient to maintain its operations at the current level for the next 12 months. Any expansion may cause the Company to require additional capital until such expansion began generating revenue. It is anticipated that the raise of additional funds will principally be through the sales of our securities. As of the date of this report, additional funding has not been secured and no assurance may be given that we will be able to raise additional funds.

As of February 28, 2015, our total liabilities were $173,758, which consists of $141,508 in loans from our shareholder,$3,000 in accounts payable and $29,250 in deferred revenue from a related party.

Also from the 10Q

Weighted average number of shares outstanding, basic and diluted


66,514,286 Three months ended February 28th, 2015

From their website!

Share Structure

(as of May 14, 2015)

Authorized: 300,000,000

Common Shares Outstanding: 77,250,000

So you see since February 28th to today the company has already issued nearly 11 million shares. From their own 10q they anticipate the need to further dilute to provide funds for their own growth until revenue from the products is sufficient enough to provide the capital they need. When will that day come? My guess is several months, until that day comes expect dilution.

Now the 3 million loan

Nate’s Food Co. (NHMD) announced today that the Company is finalizing non-dilutive purchase order financing up to $3,000,000. The financing will provide the company the capital necessary to fulfill customer orders related to the national roll-out.

The benefits of moving production from Los Angeles to Fairfield include control over the production line and equipment, a 300% increase in production space, additional storage for raw materials, reduction in freight expenses and an increase in the quality control of the product. The line cost approximately $400,000 and is being financed by SouthCorp Capital (STHC).

This is the best part, the loans seem to be covering new equipment and future purchase orders. Unfortunately it still won't be enough to cover all the cash they will need and the company knows that and states in the 10q that they will need to issue more stock. Per the 10q and the companies own website in the past 3 months the o/s has increased 17%. I expect that trend to continue, based off of what the company is telling us and the fact they have already started diluting.

All of that being said, the financing they do have in place is gold for a startup like this. Dilution should be minimal but it will still effect the stock price.

The market cap is roughly 6 million right now. I don't see that holding up until more sales and larger box stores are onboard. Mix that with dilution, that once again the company clearly states in the 10q is necessary and the price of this stock will fall, imo!

When it does I will be there and I'll be a buyer and a long. When that PR comes they landed into costco and/or walmart and their projections of 2.1 million cans sold per year is met. Then we are off to the races! GLTY and see you around!





















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